The Ethereum Classic ETC upsurge enters the final stages of Ethereum’s proof-of-stake merger

overview

Ethereum Classic (ETC) has been gaining momentum lately as the groundbreaking Ethereum (ETH) “Merge” event nears its final leg. At the time of writing, ETC is up 11.5% from its previous value, while ETH is up just 1%. The price of ETC increased from $32.12 to $36.10, and the trading volume increased from about $265 million to $1.1 billion. The revival of Ethereum Classic could be due to Ethereum’s upcoming proof-of-stake update. The merger allows the second largest cryptocurrency to abandon its proof-of-work consensus mechanism in favor of proof-of-stake. This event, which is expected to take place on September 15, 2021, aims to reduce ETH issuance by 90% and increase energy efficiency by 99.9%. Hence, the Fusion has made Ethereum Classic an attractive alternative, especially as it retains its proof-of-work mechanism.

Ethereum Classic recovers at The Merge

Market participants are interested in Ethereum Classic as Ethereum’s Proof-of-Stake update approaches. While there is no specific reason for Ethereum Classic’s sudden surge, the expected outcome of The Merge has had a significant impact on it. Ethereum Classic is perceived as “cheaper Ethereum” as an ETC token costs less than an ETH token. In addition, the declining number of miners due to the shift to proof-of-stake has increased the influx of miners into the Ethereum Classic network. One indicator of this renewed interest is the skyrocketing hash rate on the Ethereum Classic network, which hit an all-time high of about 47 terahashes per second (th/s) on Monday. This record-breaking hashrate performance strengthens the security of the Ethereum Classic network.

ETH is also climbing

Ethereum, on the other hand, has rallied over the summer leading up to The Merge. While ETH’s rally isn’t as significant as ETC’s, it still saw a 1% surge over the past day, with the coin trading at $1,582 at the time of writing.

Why is The Merge important for ETH stakeholders?

The Ethereum community anticipates moving from proof-of-work to proof-of-stake consensus to increase scalability and minimize power consumption. Ethereum enthusiasts are also excited that Proof-of-Stake will make the network more secure and user-friendly. With the upgrade, Ethereum distances itself from the carbon footprint controversy attributed to proof-of-work networks. With the merger, only 32 validators will validate the network, compared to thousands of miners validating the current network. This shift will reduce network congestion and transaction costs, especially for average users who have difficulty using the network.

What is the benefit of ETC?

Ethereum Classic remains a proof-of-work network, which means miners can still participate in monitoring the network. Ethereum Classic offers its users affordable mining costs and allows easy participation in the blockchain network. Additionally, ETC has a lower market cap than Ethereum, making it cheap to acquire.

Editor’s Notes

The emergence of cheaper alternatives like Ethereum Classic is a significant development in the evolving cryptocurrency market. However, investing in cryptocurrencies can be risky, so it is important to do your own research (DYOR) and seek professional advice before investing. Keep reading Uber Crypto News for the latest developments in the cryptocurrency industry.

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